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US Tax Filing and Compliance

What Is Earned Income & the Earned Income Credit?

Sanskriti SaxenaBy Sanskriti Saxena |Last Updated: December 26, 2025
What Is Earned Income & the Earned Income Credit?
    1. US Tax Filing and Compliance
    2. What Is Earned Income & the Earned Income Credit?
    3. Reading Time: 11 mins
    Categories
    • NRI Income Tax & Compliance
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    Frequently Asked Questions

    No matter what your source of income is, we've got you covered. There's a plan for everybody!

    Individuals who earned income from work, are U.S. citizens or resident aliens, and have a valid Social Security number (SSN), and who fulfill the IRS income limits qualify for the earned income tax credit.

    The threshold limit for the earned income tax credit depends on the number of qualifying children and the filing status. For 2024, the threshold limit ranges from $18000 (for single and no child) to $63000 (married and 3+ children).

    It depends on the job status of a person in the US. For employees, the EIC is based on gross wages, whereas for self-employed individuals, it is based on the net income after all the business expenses.

    The cut-off amount for EIC varies as per the number of children and filing tax status. For instance, if your income is above the stated limit of the IRS for your category, then you are not eligible to claim the tax credit.